SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
OCTOBER 29, 2002
KANSAS CITY SOUTHERN
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(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
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(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105
(Address of principal executive offices) (Zip Code)
COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(816) 983 - 1303
NOT APPLICABLE
(Former name or former address if changed since last report)
ITEM 5. OTHER EVENTS
KANSAS CITY SOUTHERN ANNOUNCES VAT ACCOUNTING POSITION.
On October 11, 2002, Grupo TMM, S.A. ("Grupo TMM") and Kansas City Southern,
("KCS"), owners through Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V
("Grupo TFM") of the controlling interest in TFM, S.A. de C.V. ("TFM"),
announced a favorable ruling on TFM's value added tax claim, which has been
pending in the Mexican Courts since 1997. On October 24, 2002, Grupo TMM and KCS
issued a press release providing additional information about the VAT suit
ruling. On October 29, 2002, KCS issued a press release stating that after
reviewing the matter further, TFM had concluded that it is appropriate to
reflect the recovery of the VAT claim in TFM's financial statements for the
period ended September 30, 2002. Despite this action by TFM, KCS does not intend
to reflect any recovery on the VAT refund claim in its financial statements
until after the conclusion of the legal process. See the Press Release attached
hereto as Exhibit 99.1 for further details.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DOCUMENT
(99) Additional Exhibits
99.1 Press Release issued by Kansas City
Southern dated October 29, 2002
entitled, "Kansas City Southern
Announces VAT Accounting Position," is
attached hereto as Exhibit 99.1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Kansas City Southern
Date: October 31, 2002 By: /S/ LOUIS G. VAN HORN
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Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)
EXHIBIT 99.1
KANSAS CITY SOUTHERN PRESS RELEASE
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105 NYSE SYMBOL: KSU
Date: October 29, 2002
Media Contact: William H. Galligan 816/983-1551
william.h.galligan@kcsr.com
Kansas City Southern Announces VAT Accounting Position
Kansas City Southern (NYSE: KSU) announced previously (on October 11, 2002 and
on October 24, 2002), in joint press releases with Grupo TMM, S.A. ("TMM"), a
favorable court ruling in Mexico on a value added tax ("VAT") claim of an
affiliated company, TFM, S.A. de C.V. ("TFM"). In those releases, the parties
indicated that, while they were optimistic about the ultimate outcome of the
matter, the recovery, including its timing and final amount, would have to be
determined after the conclusion of the legal process.
Kansas City Southern has been advised by TFM that after reviewing the matter
further, TFM has concluded that it is appropriate to reflect the recovery on the
VAT claim in its financial statements for the period ended September 30, 2002.
In TFM's Report of Operations, released today, TFM has recorded, as Other
Income, an amount that includes $534.4 million for the after-tax effect of the
VAT refund.
Despite this action by TFM, Kansas City Southern does not intend to reflect any
recovery on the VAT refund claim in Kansas City Southern's financial statements
for the period ended September 20, 2002. It is taking this action for the
reasons set forth in the press releases referred to above. Kansas City Southern
does not believe it to be appropriate to recognize this gain on its financial
statements at this time.
Kansas City Southern owns approximately 36.9% of the stock of Grupo
Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), TFM's parent
company, and Kansas City Southern includes its equity in the earnings of Grupo
TFM in its consolidated statements of income.
KCS IS COMPRISED OF, AMONG OTHERS, THE KANSAS CITY SOUTHERN RAILWAY COMPANY
("KCSR") AND EQUITY INVESTMENTS IN GRUPO TFM, SOUTHERN CAPITAL CORPORATION
("SOUTHERN CAPITAL") AND PANAMA CANAL RAILWAY COMPANY ("PCRC").
THIS PRESS RELEASE INCLUDES STATEMENTS CONCERNING POTENTIAL FUTURE EVENTS
INVOLVING THE COMPANY, WHICH COULD MATERIALLY DIFFER FROM THE EVENTS THAT
ACTUALLY OCCUR. THE DIFFERENCES COULD BE CAUSED BY A NUMBER OF FACTORS INCLUDING
THOSE FACTORS IDENTIFIED IN COMPANY'S DECEMBER 31, 2001 FORM 10-K AND THE
CURRENT REPORT ON FORM 8-K DATED DECEMBER 11, 2001, EACH FILED BY THE COMPANY
WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC") (COMMISSION FILE NO.
1-4717). THE COMPANY WILL NOT UPDATE ANY FORWARD-LOOKING STATEMENTS IN THIS
PRESS RELEASE TO REFLECT FUTURE EVENTS OR DEVELOPMENTS.